On May 15, the CFPB issued an amended consent order against a fintech company for alleged violations of various consumer financial protection laws. As previously covered by InfoBytes, the CFPB sued the fintech company in January for alleged violations to the CFPA, EFTA, Regulation E, the Remittance Rule, and the Prepaid Rule.
According to the CFPB, the company, which began providing remittance services in 2016 and prepaid accounts in 2019, violated sections of the CFPA by allegedly employing deceptive marketing disclosures about ATM fees that led to overcharges, and violated EFTA and Regulation E by, among other things, failing to provide required disclosures, notices and proper error resolution procedures. The violations apparently stemmed from the company’s failure to “scale its compliance team and processes” while it rapidly expanded and grew in the U.S. The amended consent order required the company to pay $449,550.99 in consumer redress and a $44,955.00 civil money penalty to the CFPB, which is significantly lower than the $2 million the company was previously ordered to pay in January.
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